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Beware: FSB Investigating 17 Funeral Policy Schemes

Author: Compare Guru
Date: 2017-02-02
Are you with any of the following 17 funeral policy providers? The Financial Services Board are investigating improper procedure.
Watch out! The Financial Services Board (FSB) have announced they are investigating 17 entities selling funeral policies and cautioned the public to be wary when purchasing such policies. The FSB started the investigation following numerous complaints from policyholders about the 17 insurance providers. According to a statement issued by the FSB, the schemes had failed to provide proof that their funeral policies were underwritten by a registered long-term insurance company, as required by law.
"[We] afforded [them] 10 days to respond. The entities have either failed to respond to this request or have failed to confirm that their funeral policies are underwritten by a registered long-term insurance company," the FSB said. "These entities will most likely continue to conduct unregistered insurance business and collecting money from the public. Since these policies are not underwritten by a registered insurance company, it cannot be guaranteed that the 'policyholders' will receive their benefits should they submit a claim," the FSB warned.

The 17 Funeral Policy Schemes Under Investigation Are:

Phela Ke Phele (North West); A.L.G Funeral Services (North West); Zarra Funeral Home (Limpopo); Zelda’s Wreaths and Coffins (Northern Cape); Amohelang Family Support Scheme (Free State); Lisakhanya Prepaid Funeral (Eastern Cape); Noah Funerals (Eastern Cape); TK’s Society (Gauteng); Tladi Funerals (Gauteng); Kotelo Funerals (Gauteng); E.R.C Cebekulu (Gauteng); Blue Rain Funeral Services (Limpopo); Eastbridge Capital SA (Eastern Cape); Tshepho Funerals Undertakers (Limpopo); Bathopele Funeral Parlour (North West); Sisa Daniels Burial Society (Eastern Cape); and Olitsoe Funeral Services (Gauteng).

Funeral Policies Not Underwritten By Registered Long-Term Insurance Company

The FSB said it probes and takes action against entities who sell a funeral policy to the public that are not underwritten by a registered long-term insurance company.
"This conduct amounts to running unregistered insurance businesses, thus breaching the provisions of the Long-term Insurance Act 52 of 1998." "Entities (including their owners) that breach the provisions of the Long-term Insurance Act 52 of 1998 may be subject to a fine or imprisonment upon conviction."

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